Convergence of Technology/Innovation in Sports. Ted Leonsis Founder, Chairman,Majority Owner, and CEO Monumental Sports and Entertainment
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1 Convergence of Technology/Innovation in Sports Ted Leonsis Founder, Chairman,Majority Owner, and CEO Monumental Sports and Entertainment
2 So what are the top trends that will shape growth? What do we see?
3 Trend 1: Third Internet Revolution will be in full swing Internet now a part of your life It s the power-plant of your business New Media is the media Broadband is everywhere Mobility is everywhere Social is everywhere Commerce is booming Ad dollars are shifting Search is still growing Mobile payments are booming Two generations now living life on the net
4 Trend 2: Mobile will fuel conversion to cashless economy Globally, 85% of transactions still in cash By 2020, McKinsey forecasts cash transactions could drop to 26% at point of sale Over the next two years, mobile payment market will reach $670 billion Square Serve Groupon
5 Trend 3: Consumerization of IT will lead to new security concerns, solutions, and business opportunities As what you have in the cloud becomes more important to you, what you will do to secure it gets personal Worldwide spending on security infrastructure, including software, services, and network security appliances for enterprise and consumer IT equipment, will reach $86 billion by 2016, up from $55 billion in 2011 IT management segment of security services forecast to reach $15 billion by 2015, up from $9 billion in Gartner
6 Trend 4: Driven by social, local will fulfill its promise Global phenomenon: 82% of all purchases are made within 20 miles of your home From $1.1 billion in 2012 to nearly $3 billion in 2016: projected jump of 170% in local ad spend on social media in the U.S. Local commerce is a $100 billion market Market Leaders will bill over $10 billion in local deal-of-the-day businesses in 2013: Groupon, LivingSocial, Amazon.com, Google Sports franchises are iconic, local economic businesses
7 Trend 5: New technologies will transform the learning process Only 22% of the world finishes high school; only 55% finishes sixth grade. (Knewton) In the University of California system, a quarter of 2010 s freshmen were unprepared for college-level writing. (Forbes) In 2011, Pearson, the world s biggest educational publisher, had 8 million U.S. students register for its online homework and assessment programs and almost 5 million enroll in its remedial online college courses. (Forbes) The rise of online learning carries with it an unprecedented opportunity to transform the schooling system into a student-centric one that can affordably customize for different student needs by allowing all students to learn at their appropriate pace and path, thereby allowing each student to realize his or her fullest potential. Clay Christensen
8 Trend 6: The vision of convergence finally becomes a reality for media consumption Up to 88% of US tablet owners use their device while watching TV (Nielsen) 4 out of 10 Americans have connected their TV to the Internet (Forrester) ARE ALL JUST SCREENS 45% of consumers report that TV is now their primary web video screen, up from 33% last year (NPD) Average cable household bill for triple play plus PPV is now in excess of $1,000 per year Convergence is coming it s only a question of when, not if. - Ted Leonsis, September 1999, Wireless Week
9 Trend 7: Data Integration: Pulling from multiple data sets is the new must have 90% of the world s data has been generated in the past two years Data is expected to grow by 800% in the next five years, with 80% of it unstructured 48 hours of new video uploaded every minute 500 million objects stored and managed on ebay every day 32 billion searches on Twitter performed last month 30 billion pieces of content shared on Facebook this month 1.8 million rental cars on the road in the U.S. 383 million credit cards in circulation in the U.S. Google unlocked the Internet with its search engine. I think Palantir is on the way to doing a similar thing inside the walls of corporate data. -Guy Chiarello (JPMorgan Chase CIO)
10 Trend 8: The most important trend in big data will be good data Use of infographics increased 150% in one year and is the fastest growing format in B2B content marketing AddThis now at 1.3 billion uniques; 14 million publishers, 10 terabytes of data According to McKinsey, the full use of data for retailers could increase operating margins by more than 60%, and allow consumers to capture $600 billion in economic surplus. McKinsey Walmart handles more than 1 million customer transactions every hour, which is imported into databases estimated to contain more than 2.5 petabytes of data. SAS
11 Trend 9: Home Automation: Intermediate steps will be eliminated Opower has processed data from 50 million homes to save 1.6 billion kilowatt hours, or enough power to power the Empire State Building for 33 years. But Opower only saves % on an energy bill, while the Nest Learning thermostat saves 20 30% Energy Security Video Communication Electronics Shopping
12 Trend 10: egov finally arrives Procurement Safety and Security Modernizing Infrastructure Record Keeping Communications Health Records Immigration Education "It's about turning government into a platform for open innovation. Data by itself is useless. It's only useful if you apply it to create an actual public benefit.
13 Trend 11: Personal Cloud: Whose side are you on? Ensuring data consistency across personal devices will become key Gartner: 1.2 billion smartphones and tablets sold in 2013 Big 5 now have created $1 trillion plus of market value The number of mobile-connected devices exceeded the world s population in 2012, and by 2016, there will be over 10 billion mobileconnected devices, or 1.4 devices per capita. Cisco
14 Trend 12: Voice will become the most sought out interface between us and our technology The most natural method of input it will improve dramatically in usefulness Voice control will be king Siri is just the beginning Artificial intelligence plus voice will power our identity on the web Twilio is powering 1.5 million phone calls per day using its API Voice could overtake touch in as little as three to five years. Mooly Eden, Intel SVP
15 Trend 13: Vertical sprouts are where the money will go First comes major horizontal companies (Amazon in e-commerce; Facebook in social), then comes vertical companies B2B Solutions Women Sports Government New Media Seniors Consumer Tech Travel Hispanics Teens Data Science Marketplace Technology Social
16 Social Media & Sports Online engagement 81% of sports fans prefer the Internet for their sports news 69% of fans use social media for sports info during a meal 33% of fans use social media for sports info during a business meeting 9% of fans use social media for sports info at church Gaming is booming Paperless ticketing Source: GMR Marketing
17 Social Media & Sports Information & interaction 83% of fans check social media while watching a game on TV 63% of fans check social media while attending games Sports programming only represents 1.3% of all TV programming Yet 130 of the top 200 (65%) most social TV programs in 2012 were sports telecasts 50 of those 130 sports telecasts were NBA games, more than any other sport Sources: Bluefin Labs and USAToday.com
18 Monumental Sports & Entertainment Sports and Media Properties NBA s Washington Wizards NHL s Washington Capitals WNBA s Washington Mystics Verizon Center Manage Kettler Capitals Iceplex Manage George Mason University s Patriot Center Monumental Network Monumental Productions Monumental Sports & Entertainment Foundation
19 Where are we headed? MoSo advertising to hit $1.47 billion by outpacing desktop advertising growth by 60%. (Street Fight) The global online video community will increase by approximately 500 million users by (Cisco) Today, 2.2 billion or 3 in 10 people are online globally. By 2020, 5.5 billion or 7 in 10 people will be online globally. (mobi Thinking) Content, distribution and e-commerce are all coming together
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